5/12/21

LP, AP & IT Security's #1 News Source

Ransom Payments & Business Inter. = 43% of Total Claims Last Three Years

Cyber Insurers Push Back on Ransom Claims
As Ransomware Proliferates, Insuring for It Becomes Costly and Questioned
With ransomware hackers seeking out companies with cyber insurance, insurers are pulling back and jacking up premiums as attacks show no sign of abating.

The number of ransomware attacks in the U.S. rose more than 300% during 2020, Homeland Security Secretary Alejandro Mayorkas said last week. One reason, say cybersecurity specialists who track ransomware threats, is that companies are too quick to pay the ransoms, relying on insurance policies for reimbursement.

Cyber insurers are raising prices and limiting coverage after a series of high-profile attacks and mounting claims from ransomware, amid concerns that insurance payouts are actually encouraging the hacking.

"The insurance company pays the ransom, the criminals make more money, so they make more ransomware, which leads to more insurance, which leads to more payment, and so we get into this vicious cycle," said Marty Edwards, vice president of operational technology security at cybersecurity company Tenable Inc.

Insurers say they aren't the ones making the decision to pay a ransom-that responsibility lies with the client, and insurers are contractually obligated to comply.

DarkSide, for example, believed to be behind the hack last week on Colonial Pipeline Co., run a franchise business, licensing their ransomware to hacker entrepreneurs and providing them with support and training, said Matt Durrin, incident response technical lead for LMG Security, a forensic investigation firm.

Insurers are beginning to change their approach to cyber policies in response to the rise in claims and scrutiny of ransom payments.

Average pricing for cyber policies increased 5% to 10% from 2019 to 2020, a March report from professional services firm Aon PLC said, noting that even that hike wouldn't be enough to cover the frequency and severity of losses. Aon didn't respond to a request for comment.

In an April 15 note, Fitch Ratings Inc. expressed concern on the long-term effects cyberattacks would have on property and casualty insurers who issue cyber coverage. The direct loss ratio for stand-alone cyber coverage reached 73% in 2020 from 47% in 2019, analysts said, the highest level recorded since cyber data has been included in financial reporting.

Illustrating the pressure that heightened ransom demands put on insurers, data from Chubb Group Holdings Inc.'s Cyber Index shows that costs involving ransom payments and business interruption accounted for 43.5% of total claims over the past three full years. wsj.com

What Comes After Outdoor EMV?
As more retailers become EMV-compliant at the pump, point-to-point encryption comes into focus.

The April 2021 deadline for implementing EMV at the pump is now in the rearview mirror. Ahead of the final deadline, which was extended from October 2020 due to the COVID-19 pandemic, the c-store industry substantially grew its ability to offer outdoor EMV acceptance. Now, retailers now must turn their focus to implementing another technology at the dispensers to further reduce risk of credit card acceptance.

C-store and fuel retailers now look to be prime targets for cyber-attacks focused on extracting sensitive payment card data, as shown by a recent spate of attacks in the vertical.

Despite common misconception, enabling outdoor EMV acceptance doesn't prevent an operator from becoming the next retailer on the news because of a wide-scale credit card breach. While a strong mechanism for preventing counterfeit fraud, EMV solutions do not secure underlying payment card data itself - and cyber criminals are well aware of this critical vulnerability.

Similar to EMV enablement, retailers are unfortunately behind in implementing solutions to secure payment card data. Most retailers in other verticals have implemented one or both of two separate but linked cryptography-based technologies used to protect card data:

Point-to-point encryption (P2PE): In some implementations referred to as end-to-end encryption (E2EE), P2PE encrypts payment card data within the payment terminal, ensuring data is protected until it is decrypted at a secure point above-site (oftentimes at a retailer's payment provider). P2PE protects card data during payment processing.

Tokenization: Tokenization complements P2PE solutions by replacing payment card data with less valuable tokens, which can then be stored and used for future payment processing. Tokenization protects card data following payment processing.  cstoredecisions.com

Russian Ransomware Group Suspected in Massive Pipeline Attack
Researchers track down five affiliates of DarkSide ransomware service

Customers of the RaaS can deploy malware as they see fit and dictate the content of leaks.

Researchers have provided the details of an investigation into cyberattacker activity linked to DarkSide ransomware.

On Tuesday, FireEye researchers documented five separate clusters of activity suspected of being connected to DarkSide, the Ransomware-as-a-Service (RaaS) network responsible for the Colonial Pipeline security incident.

Colonial Pipeline, one of the largest fuel pipeline operators and delivery companies in the United States, suffered a ransomware outbreak last week which has resulted in pipeline closures and fuel shortages. The firm is yet to restore all of its systems and the case -- as it involves a critical infrastructure (CI) asset -- is deemed serious enough to involve the FBI.

DarkSide's core team has attempted to distance itself from the attack by claiming to be "apolitical" and a group simply in it for the money. However, the incident has prompted the interest of not only law enforcement, but security researchers tracking RaaS services.

So far, FireEye has tracked five threat actors who are either current or past DarkSide RaaS affiliates. zdnet.com  nbcnews.com

Adobe Issues Patch for Acrobat Zero-Day

Update: Wichita, KS: Charges filed in Shooting Death of C-Store Security Guard
A Wichita man has been charged with second degree murder for the shooting death of a security guard at a downtown area convenience store. 41-year-old Laroy West made an appearance Tuesday in Sedgwick County District Court. In addition to the second degree murder charge, he is also charged with four counts of aggravated assault and two counts of criminal possession of a weapon by a convicted felon. His bond was set at $250,000 and his next court date will be May 20th. West is charged in the shooting death of 39-year-old Will Robinson during a disturbance on May 5th at a Quik Trip store at Broadway and Murdock. Police said Robinson had escorted West out of the store after a disturbance, and the two men got into another disturbance across the street. Police arrested West the next day, and Robinson died in a hospital two days after the shooting. kfdi.com

Polk County, FL: Deputies investigate deadly shooting at Walmart parking lot
One person is dead, and another was taken into custody following a shooting in Auburndale. The shooting occurred at a Walmart store on U.S. Highway 92 around 2:30 a.m. Wednesday. Polk County investigators said a victim with gunshot wounds was taken to a nearby hospital where he passed away. Authorities said they spotted the suspect's vehicle nearby from the scene and was pulled over. One person is in custody. Neither the suspect nor the victim was identified. The events leading up to the shooting remain under investigation. fox13news.com

Tampa, FL: Dunkin Donuts customer who used racial slur dies after being punched by employee
A Dunkin Donuts employee in Tampa is charged with the death of a customer after he allegedly punched the man for using a racial slur, causing the victim to fall and hit his head. Tampa police said the victim, a 77-year-old man, went through the drive-thru at the Dunkin Donuts location at 410 South 50 Street on May 5. The unidentified man became upset about the lack of service, and was asked by staff members to leave without being served. Instead, police said the victim parked his car and went inside the restaurant to argue with 27-year-old employee Corey Pujols. Investigators said the victim called Pujols a racial slur and repeated the phrase after Pujols challenged him to do so. That's when police said Pujols punched the victim in the jaw, knocking the man out and causing him to fall and hit his head on the floor. fox13news.com

San Luis Obispo, CA: SLOPD identifies detectives shot during officer-involved shooting on Monday
San Luis Obispo City officials have identified the officer killed in a shooting on Monday as Detective Luca Benedetti, 37, a 12-year law enforcement veteran. The Pad Climbing gym announced on Facebook Tuesday that the suspect in Monday's shooting, Edward Zamora Giron, was a former employee and that he was suspected of breaking into the gym early Monday morning.

The second officer who was shot and injured was identified as Detective Steve Orozco. He was reportedly treated and released from Sierra Vista Regional Medical Center on Monday evening. He is expected to make a full recovery. At about 5 p.m. on Monday, police say Benedetti and Orozco were among six officers serving a search warrant at an apartment on Camellia Court when the suspect began shooting at officers and officers returned fire. The suspect, identified as Edward Zamora Giron, 37, was later found dead inside the apartment of an apparent self-inflicted gunshot wound. Police say he had also been struck when the officers returned fire.

At about 5 p.m. on Monday, police say Benedetti and Orozco were among six officers serving a search warrant at an apartment on Camellia Court when the suspect began shooting at officers and officers returned fire. The suspect, identified as Edward Zamora Giron, 37, was later found dead inside the apartment of an apparent self-inflicted gunshot wound. Police say he had also been struck when the officers returned fire. Police say the search warrant was for possible stolen property related to a series of late-night commercial burglaries over the past week. ksby.com

Little Rock, AR: McDonald's worker shoots customer after dispute over change
An argument over payment at an Arkansas McDonald's early Tuesday left one man recovering from a gunshot wound, police say. The customer placed an order in the drive-thru, according to police, and walked into the Little Rock restaurant around 3:30 a.m. after he said he didn't get change back after paying, KARK reported.
A worker and the customer got into an argument before another worker escorted the customer outside, according to THV. The customer told police he and the worker started fighting before the worker pulled out a gun and shot him in his right index finger, The Arkansas Democrat-Gazette reported. When police arrived, they found a bullet hole in the front window of the restaurant as well as a shell casing, THV reported.
The customer was taken to a hospital where he was treated for his injuries, according to KARK. The restaurant's manager told police the worker had been sent home "because he shot someone," the Democrat Gazette reported. No arrests have been made, according to KARK. The incident is under investigation. yahoo.com

Phoenix, AZ: Man accused of shooting 2 people in month-long string of armed robberies
The Phoenix Police Department says it has arrested a 29-year-old man connected to a series of armed robberies, including two in which victims were shot. Trey Waters, 29, faces various charges, including a count of attempted murder, five counts of aggravated assault, and three counts of armed robbery. Sgt. Ann Justus said he was armed when officers took him into custody. All three of the armed robberies happened in the past month - the first the morning of April 12, the second the afternoon of April 25, and the most recent on the morning May 9. azfamily.com

Lompoc, CA: 2 people shot after altercation at 7-Eleven store
Two people sustained nonlife-threatening gunshot wounds Monday night following an altercation at the 7-Eleven store on North H Street in Lompoc. A group of people and single individual inside the 7-Eleven got into a conflict that continued into the parking lot, where the individual produced a firearm and shot at the group, striking two, according to Lompoc Police Sgt. Bryan Dillard. santamariatimes.com

DeKalb County, GA: Woman killed following pressure cooker explosion at Chinese restaurant

North Lauderdale, FL: Man shot dead outside C-store just moments after being dropped off

Bakersfield, CA: Man admitted to shooting other man after being pepper-sprayed outside C- Store
 

Robberies, Incidents & Thefts

Fresno, CA: Security guard attacked trying to stop theft at Fresno Nordstrom Rack
A store security guard was attacked and two suspects escaped after the Nordstrom Rack employee attempted to stop a robbery at the Fresno store, according to police. The incident took place Tuesday outside the store at 7883 N. Blackstone in Fresno. Officers say a heavy-set black female stole items from the store and was then confronted by store security. A black male who was inside a vehicle got out and attacked the security guard. Both suspects left the scene in what police say was a beat-up blue compact vehicle. yourcentralvalley.com

Arlington, VA: Man Accused of Assaulting Sushi Restaurant Owner After Trying to Skip $70 Bill in Virginia; used racial slurs against her and her son

Ghent, NY: Gun Store Burglar sentenced to 9 years
 

Counterfeit

Indianapolis, IN: Package with 330 fake championship sports rings are intercepted
U.S. Customs and Border Protection (CBP) officers in Indianapolis seized a shipment last week containing hundreds of counterfeit championship sports rings. The shipment, which had 330 fake rings, was destined for a store in Texas. The parcel was flagged for inspection due to irregularities in the shipment and routing information, officials said. The counterfeit rings were for a mix of MLB, NBA, NFL and college football teams: Los Angeles Lakers (117), Dallas Cowboys (73), Pittsburg Steelers (53), New England Patriots (17), Dallas Mavericks (9), Chicago Bulls (10), Kansas City Chiefs (9), Chicago Bears (10), Philadelphia Eagles (3), St. Louis Cardinals (10), NY Yankees (9), and Texas A&M (10). The rings were sent to an import specialist for evaluation. The specialist determined the rings were packaged poorly and had a plastic feel. Had the rings been real, they would have reportedly been worth $495,000. fox59.com

Editor's Note: No Cleveland Browns rings found.

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